U.S. trade deficit shrinks more than expected

The U.S. trade deficit in goods unexpectedly contracted significantly in August, according to recent government data. The trade surplus in goods decreased by a remarkable 16.8% to $85.5 billion, whereas analysts had previously expected a reduction to $95.2 billion. The decline in imports significantly contributed to this development, falling by $19.6 billion to $261.6 billion. Simultaneously, exports decreased by $2.3 billion to $176.1 billion. President Donald Trump's tariffs have caused considerable fluctuations in goods imports this year. These tariffs weighed on GDP in the first quarter before supporting economic growth in the second quarter of the year. Meanwhile, growth expectations for the third quarter are stabilizing at an annual rate of 2.5%. From April to June, the economy grew by an impressive 3.8%, with the reduced trade deficit playing a central role.